Saudi Real Estate Glossary

Comprehensive glossary of 510 Saudi real estate terms with simple explanations in three languages: Arabic, English, and Turkish.

510

Terms

A

Absher

Saudi government portal providing electronic services for citizens and residents, includes data verification needed for Ejar transactions.

Saudi Regulations

Absolute Auction

Auction selling property to highest bid without reserve price, encouraging bidding, common in property liquidation.

Auctions & Sales

Absorption Rate

Speed of selling or renting new properties in market, higher means active market, lower indicates slowdown, important for developers.

Valuation & Investment

Adverse Possession

Acquiring ownership by long-term possession without owner's objection, conditions difficult and varying by local law.

Ownership & Rights

Affidavit

Sworn written statement used in legal evidence, presented in real estate cases, accepted as evidence before judiciary.

Legal & Regulatory

Affordable Housing

Reasonably priced residential units for middle-income segments, supported by government through Sakani program, contributing to homeownership rates.

Property Types

Aging Analysis

Report categorizing arrears by delay period: 30, 60, 90, 120+ days, helping prioritize collection and assess risks.

Financial & Accounting

Agricultural Land

Land designated for agricultural activity, outside urban scope, lower prices than residential properties, requiring farming licenses.

Property Types

AI in Real Estate

AI applications in real estate like price estimation, trend prediction, and investment analysis, improving market decisions.

Real Estate Technology

Amenities

Services and facilities surrounding property like schools, hospitals, markets, gas stations, increasing property value and appeal.

Valuation & Investment

Amicable Resolution

Resolving dispute through direct agreement between parties without litigation, faster and cheaper, preserving relationships between landlord and tenant.

Disputes & Resolution

Amortization

Distribution of asset or loan cost over set time period through regular installments, common in real estate loans and long-term investments.

Financial & Accounting

Amortization Schedule

Schedule detailing monthly loan installments showing what's paid of principal and interest, helping borrower understand loan cost.

Real Estate Financing

Annual Lease

One-year lease, most common in Saudi Arabia, providing stability at lower rent than short-term contracts.

Contracts & Leasing

Annual Report

Comprehensive summary of financial and operational property performance during the year, presented to owner and investors, includes revenues, expenses, profits.

Financial & Accounting

Apartment

Residential unit within multi-story building, containing rooms and facilities, common in major Saudi cities like Riyadh and Jeddah.

Property Types

API Integration

Connecting different systems for automatic data exchange, like connecting office system to Ejar, Mada, and listing platforms.

Real Estate Technology

Appeal

Right to challenge ruling before higher court, must be filed within legally specified period, may overturn, modify, or uphold ruling.

Legal & Regulatory

Appraisal

Process of estimating property value by certified expert for sale, mortgage, or insurance purposes, with detailed result report.

Valuation & Investment

AR Real Estate

Technology allowing seeing property with virtual furniture before purchase, powerful marketing tool, helping in purchase or rental decision.

Real Estate Technology

Arbitration

Resolving dispute through private arbitrator issuing binding decision, faster than general courts, usually agreed upon in contract clauses.

Legal & Regulatory

Architect

Specialist in designing buildings considering aesthetics, function, and technical requirements, designs blueprints and supervises execution.

Construction & Development

Auction Catalog

Detailed document of properties offered in auction, including descriptions, photos, and prices, helping bidders prepare.

Auctions & Sales

Auction Deposit

Amount bidder pays before auction as seriousness guarantee, returned to losers and deducted from winner's price, typically 5-10% of value.

Auctions & Sales

Auction Fees

Costs winner pays to auction, typically 2-5% of sale price, added to total cost of property purchase.

Auctions & Sales

Auction Platform

Electronic platform managing real estate auctions like Mosanada in Saudi Arabia, providing transparency and wide bidder access.

Auctions & Sales

Auction Results

Report published after auction showing sold properties and prices, important reference for evaluating market and area property prices.

Auctions & Sales

Auctioneer

Licensed person managing auction, announcing bids, and closing sale, must be neutral and trained, with commission from sale value.

Auctions & Sales

Awqaf Authority

Saudi entity responsible for managing public endowments, overseeing investment of endowed properties for charitable work.

Ownership & Rights

B

Balady Platform

Saudi electronic municipal services platform, providing building permits, completion certificates, and property-related services.

Saudi Regulations

Balloon Payment

Large payment paid at end of loan term in addition to low monthly installments, used in some commercial loans.

Real Estate Financing

Bare Ownership

Property ownership without usufruct right, owner retains real right but another benefits, combining with usufruct later.

Ownership & Rights

Basement

Underground floor in building, used for storage, parking, or services, area part of total leased space.

Property Types

Bidder

Person participating in auction by offering financial bids to buy property, must be registered with financial guarantee before auction.

Auctions & Sales

Big Data

Massive amounts of real estate data analyzed to extract useful insights, includes sale and rental prices and demographic trends.

Real Estate Technology

Blockchain Real Estate

Using blockchain technology in real estate to document transactions and increase transparency, under development in Saudi Arabia, reduces fraud.

Real Estate Technology

Blog

Section in website for publishing educational articles and market news, effective tool for improving SEO and attracting visitors from search engines.

Real Estate Marketing

Blueprint

Detailed building drawings including dimensions and technical details, basis of construction process, approved by engineers and municipality before execution.

Construction & Development

Boundary Dispute

Dispute between owners over land boundaries, resolved by official maps and surveying, may require judicial intervention.

Ownership & Rights

Brand Positioning

How customers perceive brand in market, distinguishing it from competitors, defining value offered to customer.

Real Estate Marketing

Branding

Real estate office identity distinguishing it from competitors, includes name, logo, and values, basis of trust and long-term customer acquisition.

Real Estate Marketing

Breach Notice

Official notice to breaching party to require return to compliance, specifying deadline before legal action, preserving rights.

Disputes & Resolution

Breach of Contract

Failure of either party to comply with contract terms, like non-payment or property misuse, giving the affected party right to claim compensation or termination.

Contracts & Leasing

Bridge Loan

Short-term loan bridging gap between buying new property and selling old, higher interest but flexible solution for investors.

Real Estate Financing

Brokerage Fee

Fees real estate broker charges for services in completing sale or rental deal, set as percentage of deal value or fixed amount.

Financial & Accounting

Brokerage License

License from REGA to practice real estate brokerage, must be renewed periodically, mandatory for every real estate office in Saudi Arabia.

Saudi Regulations

Budget Property

Property with reasonable prices and basic specifications, targeting middle and lower segments, modest but stable rental returns.

Property Types

Budget Variance

Difference between planned and actual figures in budget, helping identify problems and adjust future property planning.

Financial & Accounting

Budgeting

Advance financial planning for expected property income and expenses, helping manage cash flow and plan maintenance and investment.

Financial & Accounting

Building Code

Set of mandatory rules and specifications for building properties in Saudi Arabia, covering safety, health, energy efficiency, and structural.

Construction & Development

Building Maintenance

Maintenance of building common parts like elevators, generators, and facilities, done regularly, funded by owner fees or management.

Property Management

Building Permit

Official municipality license to construct or renovate building, mandatory before starting work, specifying allowed specifications and limits.

Saudi Regulations

Buy and Hold

Strategy of buying property to hold long-term benefiting from value appreciation and rental returns, less risky than flipping.

Valuation & Investment

Buyer Persona

Detailed description of typical customer including age, income, and preferences, helps customize marketing messages and improve results.

Real Estate Marketing

Buyer's Premium

Percentage added to hammer price paid by buyer to auction, typically 5-10%, forming revenue source for auction operators.

Auctions & Sales

C

Call to Action (CTA)

Button or phrase prompting customer to take specific action like calling or visiting site, decisive element in ads and pages.

Real Estate Marketing

Capital Gain

Profit from selling property at price higher than purchase cost, may be subject to taxes in some countries, exempt in Saudi Arabia for individuals.

Financial & Accounting

Capitalization Rate (Cap Rate)

Ratio of annual net operating income to property value, indicator of expected return, higher means greater return but higher risk.

Valuation & Investment

Cash Closing

Daily procedure to reconcile cash receipts with records and deposit in bank, ensuring accounting accuracy and preventing loss.

Financial & Accounting

Cash Flow

Net money flowing in and out of real estate investment monthly, positive means profit and negative means deficit, basis of investment decisions.

Financial & Accounting

Certified Appraiser

Expert licensed by Saudi Authority for Accredited Valuers (Taqeem) to value real estate, reports accepted by banks and courts.

Valuation & Investment

Civil Engineer

Engineer specialized in constructing buildings, roads, and bridges, responsible for structural safety, supervises execution and selects materials.

Construction & Development

Class Action

Lawsuit filed by group of plaintiffs with same dispute, common against developers in delivery delays, lower cost and more effective.

Disputes & Resolution

Clear Title

Title deed without any pledges, liens, or disputes, ideal for sale, guaranteeing buyer full ownership without restrictions.

Ownership & Rights

Cloud Storage

Saving data on remote servers instead of local devices, secure and accessible anywhere, basis of modern real estate systems.

Real Estate Technology

Co-Borrower

Another person borrowing with original borrower, doubling considered income and increasing chances of obtaining loan, bearing full responsibility.

Real Estate Financing

Co-Ownership

Property ownership by more than one person, each owner has defined share, requiring all owners' consent for property disposition.

Ownership & Rights

Co-Signer

Person guaranteeing tenant's obligations financially and legally, becoming liable for debts if tenant defaults on payment.

Contracts & Leasing

Co-working Space

Shared offices rented by hour, day, or month, popular among freelancers and startups, providing flexibility and lower cost.

Property Types

Cold Leads

Customers who showed weak interest, needing more marketing and persuasion before deciding, long-term investment.

Real Estate Marketing

Collection Efficiency

Ratio of collected rent to due rent, indicator of property management effectiveness, targeting above 95%.

Financial & Accounting

Commercial Lease

Lease for commercial properties like shops, offices, and warehouses, subject to different terms than residential with potentially longer durations.

Contracts & Leasing

Commercial Property

Property used for commercial activities, includes offices, shops, and warehouses, subject to higher taxes and standards than residential.

Property Types

Commercial Real Estate

Properties designated for commercial activities like shops, offices, warehouses, and hotels, subject to different regulations and taxes than residential.

Saudi Regulations

Commercial Register

Official document proving business registration, required for real estate offices and commercial tenants, issued by Ministry of Commerce.

Saudi Regulations

Commercial VAT

15% tax on commercial real estate rental in Saudi Arabia, paid by commercial tenant to VAT-registered landlord.

Tax & Zakat

Commission

Percentage real estate offices take for their services, typically 2.5% of annual rent value, paid by landlord or tenant per agreement.

Financial & Accounting

Common Areas

Building parts designated for all residents like entrance, elevators, corridors, and gardens, maintained with shared expenses.

Property Management

Comparative Market Analysis

Valuation method comparing property to similar recently sold ones, most common method for valuing residential properties in Saudi Arabia.

Valuation & Investment

Compensation

Monetary amount the breaching party is obligated to pay to compensate damage to other party, determined judicially or by agreement.

Legal & Regulatory

Competitive Analysis

Studying competing real estate offices to identify strengths, weaknesses, and opportunities, basis of successful strategic decisions.

Real Estate Marketing

Complaint Filing

First step in rental dispute, done electronically through Ejar, requiring documentation and sufficient evidence to prove claim.

Disputes & Resolution

Completion Certificate

Document issued by municipality after building completion per permit, prerequisite for ownership registration and use, proving compliance with specifications.

Saudi Regulations

Compliance Officer

Employee responsible for ensuring real estate office compliance with regulations, monitoring procedures and reporting to regulators.

Legal & Regulatory

Construction Cost

Total property construction costs including materials, labor, licenses, and management, fundamental factor in determining final property value.

Construction & Development

Construction Loan

Loan disbursed in installments per construction phases, converted to regular mortgage upon completion, designated for developers and owners.

Real Estate Financing

Construction Project

Project to construct new property or renovate existing, phases: planning, design, execution, delivery, requiring professional management.

Construction & Development

Content Marketing

Publishing useful educational articles and videos to attract customers, building trust and improving search engine visibility, long-term investment.

Real Estate Marketing

Contract Amendment

Making changes to existing lease terms by mutual agreement, such as modifying rent or adding clauses, processed through Ejar platform.

Contracts & Leasing

Contract Annex

A supplementary document to the original contract containing additional terms or modifications, having same legal force as the original and officially documented.

Contracts & Leasing

Contract Clause

Specific text in contract regulating particular aspect of relationship, binding on both parties unless violating law or public order.

Legal & Regulatory

Contract Disclosure

Disclosure by one party to other of material information about property, hiding may void contract, like substantial defects or legal disputes.

Legal & Regulatory

Contract Fees

Costs of authenticating contracts in Ejar, 125 SAR annually for residential and 200 SAR for commercial, paid by lessor or real estate office.

Contracts & Leasing

Contract Handover

Procedure of receiving property from landlord or returning it at contract end, including a report documenting property condition and meter readings.

Contracts & Leasing

Contract Interpretation

Determining intent of contract clauses when ambiguous, interpreted in favor of obligation bearer, considering parties' common intent.

Legal & Regulatory

Contract Language

The official language of the contract, originally Arabic in Saudi Arabia; translations may be added but Arabic version is the legal reference.

Contracts & Leasing

Contract Novation

Replacing one contract party with new one by all parties' consent, voiding old contract and creating new, common in lease transfers.

Legal & Regulatory

Contract Renewal

Extension of lease for new term under same or modified terms, automatic in Ejar unless either party expresses intent to terminate 60 days before expiry.

Contracts & Leasing

Contract Template

Standardized lease contract template approved by Ministry of Housing, ensuring all mandatory clauses and legally protecting both parties.

Contracts & Leasing

Contract Validity

Availability of legal conditions for contract validity: consent, capacity, subject, cause, if any missing the contract is void.

Legal & Regulatory

Contractor

Company or person executing construction project per specifications, with contract with owner specifying schedule, cost, and specifications.

Construction & Development

Conversion Rate

Ratio of visitors who completed desired action like contact or rental, site effectiveness indicator, continuously targeting to raise.

Real Estate Marketing

Corrective Maintenance

Repairs done after breakdowns or property issues appear, higher cost than preventive, includes emergencies like plumbing and electrical failures.

Property Management

Cost Approach

Valuing property by calculating reconstruction cost minus depreciation, used for new or specialized properties hard to compare.

Valuation & Investment

Cost Center

Organizational unit where costs are calculated independently, each property can be a cost center to analyze its profitability.

Financial & Accounting

Counter-Claim

Claim from defendant against plaintiff in same case, considered with original claim, saving time in adjudication.

Disputes & Resolution

Court Fees

Fees paid to judicial body for case consideration, nominal in Ejar, may be high in major cases.

Disputes & Resolution

Court Judgment

Official decision from judiciary settling disputes between parties, binding for execution, with appeal mechanisms within specified periods.

Legal & Regulatory

Credit Bureau (Simah)

Saudi Credit Bureau, collecting credit data and providing banks with borrower reports, generating periodic reports.

Real Estate Financing

Credit History

Person's previous credit dealings record, studied by bank before granting loan, late prior payments reduce chances of obtaining financing.

Real Estate Financing

Credit Score

Numerical assessment of borrower's creditworthiness, issued by Simah in Saudi Arabia, higher means better chances for financing on favorable terms.

Real Estate Financing

Crisis Management

Plans for handling emergencies like fires, floods, and tenant loss, essential skill for managers, protecting property and reputation.

Property Management

Customer Testimonials

Previous customers' opinions about office services, building trust and convincing potentials, displayed on website and social media.

Aerial property photography by drones, highlighting location and view, modern and attractive, common in large properties.

Real Estate Marketing

Duplex

Two-story residential unit connected by internal stairs, larger than regular apartment, providing separation between living and sleeping.

Property Types

E

E-Invoice (Fatoorah)

Mandatory e-invoicing system in Saudi Arabia since 2021, requiring tax-liable businesses to issue standardized electronic invoices.

Financial & Accounting

E-Signature

Legally certified electronic signature for rental and sale contracts, saving time and enabling remote transactions, mandatory in Ejar.

Real Estate Technology

Early Termination

Ending the lease before its agreed duration, either by mutual consent or for legitimate reason, potentially incurring penalties per contract clauses.

Contracts & Leasing

Easement

Right on property for benefit of another property like right of way or water access, established by contract and registered, follows property even when sold.

Ownership & Rights

Educational Property

Property for schools, universities, and training centers, subject to Ministry of Education standards, requiring large spaces and multiple facilities.

Property Types

Ejar Broker

Ejar-authorized broker assisting in contract authentication and follow-up, receiving nominal fees for services.

Saudi Regulations

Ejar Disputes

Service in Ejar to resolve disputes between landlord and tenant, through specialized judicial committee without need for general courts.

Saudi Regulations

Ejar Fees

Ejar platform service fees: 125 SAR for annual residential and 200 SAR for commercial, paid by lessor or real estate office.

Saudi Regulations

Ejar Platform

A Saudi government platform to regulate the rental market and authenticate lease contracts electronically, mandatory for residential since 2018 and commercial later, operated by Ministry of Housing.

Contracts & Leasing

Electrical System

Electricity network in property from meters to outlets, must follow building code, malfunctions dangerous requiring licensed electrician.

Construction & Development

Electronic Payment

Rent payment through electronic channels like bank transfer, stcpay, and Mada, providing documented record and easy accounting tracking.

Financial & Accounting

Electronic Signature

Legally certified digital signature used to authenticate contracts electronically through Ejar, holding same legal force as traditional signature.

Contracts & Leasing

Email Marketing

Sending email newsletters to customers with latest properties and offers, effective for re-targeting interested parties, low cost and good return.

Real Estate Marketing

Emergency Repair

Immediate repair for issues threatening property or occupants safety, like burst pipe or dangerous electrical fault, requiring response within hours.

Property Management

Eminent Domain

State's right to seize private properties for public benefit like road construction, with fair value compensation to owner.

Ownership & Rights

Encroachment

Construction or activity on neighbor's land without permission, property rights violation, requiring removal legally with compensation if damage exists.

Ownership & Rights

Encumbrance

Third-party rights on property limiting disposition, includes pledges, liens, and agreements, must be disclosed before sale.

Ownership & Rights

Energy Efficiency

Designing property for lower energy consumption, including insulation and efficient lighting, reducing operating costs and raising property value.

Construction & Development

Entire Agreement Clause

Clause stating written contract is entire agreement, disregarding prior conversations and verbal undertakings, protecting from external claims.

Legal & Regulatory

Environmental Impact

Evaluating project effects on surrounding environment, mandatory for major projects, determining necessary measures to reduce damage.

Construction & Development

Equity

Property value minus any loans on it, representing owner's actual share, increasing with loan repayment and value appreciation.

Valuation & Investment

Escrow Account

Bank account where funds are held by neutral third party, released when specific conditions met, used in major real estate transactions.

Financial & Accounting

Escrow Funds

Funds held by neutral third party until specific conditions met, common in major sale transactions, protecting both parties.

Real Estate Financing

Escrow Services

Services provided by neutral parties to manage funds in real estate transactions, ensuring rights of both parties and protecting from fraud.

Financial & Accounting

Etemad Platform

Saudi platform for government procurement and competitions, including government contracts, rentals, and government real estate projects.

Saudi Regulations

Eviction

Forcing tenant to vacate the property, done only through legal channels for legitimate reasons like non-payment or contract expiry.

Contracts & Leasing

Eviction Order

Court ruling to evict tenant from property, executed with execution court assistance, issued for legitimate reasons like non-payment.

Disputes & Resolution

Eviction Procedure

Legal steps landlord follows to evict tenant, including notice and litigation through Ejar, forceful eviction without ruling not allowed.

Legal & Regulatory

Evidence

What is presented in dispute to prove facts, including contract, receipts, photos, witnesses, electronic correspondence, basis of ruling.

Legal & Regulatory

Execution Court

Specialized court for executing judgments and executive titles, resorted to by landlord to collect arrears or evict property.

Legal & Regulatory

Expense Tracking

System for recording and categorizing all property expenses, helping prepare tax reports and analyze profitability, electronic systems preferred.

Financial & Accounting

Expert Witness

Specialized expert providing technical opinion in dispute like real estate appraiser or engineer, testimony helping in dispute adjudication.

Disputes & Resolution

F

FIFO Payment System

Accounting mechanism allocating payments to oldest installments first, used in rental management to reduce arrears and organize records.

Financial & Accounting

Financial Statement

Accounting reports showing financial position of property or office, including balance sheet, income statement, and cash flows, basis of decisions.

Financial & Accounting

Finishing

Final construction phase including paints, flooring, and accessories, determining final impression and market property value.

Construction & Development

Fire Safety

Fire prevention systems and procedures in property, including alarms, extinguishers, and exits, mandatory per Civil Defense.

Construction & Development

Fixed Rate

Interest rate not changing throughout loan term, providing stability for borrower in installments, usually slightly higher than variable.

Real Estate Financing

Flipping

Strategy of buying property at low price, renovating or waiting for price rise, then selling at profit, requiring market expertise.

Valuation & Investment

Force Majeure

Exceptional events beyond control of parties preventing contract execution like natural disasters, temporarily exempting from legal liability.

Contracts & Leasing

Foreclosure

Legal procedure where financier seizes property upon borrower's default, done after specific legal procedures.

Real Estate Financing

Foreclosure Auction

Auction selling property foreclosed due to borrower's payment default, opportunity to obtain properties at below-market prices.

Auctions & Sales

Foreign Investment

Foreign property ownership in Saudi Arabia, subject to special conditions, opportunities grew after Vision 2030 reforms and ownership facilitation.

Tax & Zakat

Foreign Ownership

Right of foreigners to own properties in Saudi Arabia, greatly evolved with Vision 2030, subject to special conditions and licenses.

Ownership & Rights

Foundation

Lower part of building connecting it to ground, foundation of building stability, must be designed to bear building weight and soil movement.

Construction & Development

Fractional Ownership

Owning part of property with others, allowing entry to real estate investment with limited budget, managed through specialized funds.

Real Estate Technology

Freehold

Full permanent property ownership, highest type of ownership, allowing complete disposition, most common in Saudi Arabia for citizens.

Ownership & Rights

Furnished Lease

Lease where property comes fully furnished, usually short-term, with higher rent than unfurnished due to included furniture and appliances.

Contracts & Leasing

Furnished Property

Property coming with full furniture and appliances, ready for immediate occupancy, preferred by expats and short-term tenants despite higher rent.

Property Types

G

Garden Apartment

Ground floor apartment with private garden, popular for families, providing outdoor spaces with apartment comfort.

Property Types

Gift Deed

Transferring property ownership to person without compensation, authenticated at Notary, common among family members, subject to ownership transfer procedures.

Ownership & Rights

Good Faith

Legal principle obligating contract parties to deal honestly and fairly, protecting contractual relationship and preventing exploitation or fraud.

Contracts & Leasing

Good Faith Clause

Clause obligating parties to deal in good faith during contract execution, fundamental principle assumed even if not expressly stated.

Legal & Regulatory

Governing Law

Specifying applicable law to contract upon dispute, usually law of property location country, Saudi Arabia for properties in Kingdom.

Legal & Regulatory

Green Building

Buildings designed to reduce resource consumption like energy and water, using natural materials, with accredited certifications like LEED.

Construction & Development

Gross Income

Total rental revenue before any expense deductions, used for calculating occupancy rates and gross return on investment.

Financial & Accounting

H

Hammer Price

Final property price in auction when hammer falls, becoming binding on both parties, basis of final sale contract.

Auctions & Sales

Handover

Property handover from developer to buyer after construction completion, done by handover protocol proving compliance with agreed specifications.

Construction & Development

Hearing

Official meeting of parties before judicial committee to present arguments, may be in-person or electronic, recorded in official protocol.

Disputes & Resolution

Highest Bid

Largest amount offered by bidder in auction, winner bidder is committed to purchase, paying percentage immediately and rest within set period.

Auctions & Sales

Home Equity Loan

Second loan guaranteed by same mortgaged property, used to obtain cash for project financing, requiring sufficient property value.

Real Estate Financing

Home Staging

Beautifying property with furniture and accessories to showcase in ads and viewings, typically raising sale price by 5-10%.

Real Estate Marketing

Homeowners Association (HOA)

Organization of unit owners in building or compound, managing common facilities and setting rules, collecting periodic maintenance fees.

Property Management

Homeownership Program

Saudi initiative targeting raising citizen homeownership to 70% by 2030, including loans, financial subsidies, and land grants.

Saudi Regulations

Hot Leads

Customers who showed strong interest in property and close to making purchase or rental decision, must contact quickly.

Real Estate Marketing

Hotel Property

Commercial property designated for hospitality, requiring special licenses, large investment but high returns, requiring specialized management.

Property Types

HVAC

Heating, ventilation, and air conditioning systems, essential for property occupants comfort, forming large part of operating costs.

Construction & Development

I

Ijara

Islamic financing formula where customer leases property from bank with promise of ownership at end, similar to lease-to-own.

Real Estate Financing

Income Approach

Valuing property based on its income generation capacity, used for investment properties like offices, shops, and rental residential buildings.

Valuation & Investment

Indemnification

Undertaking by one party to bear losses of other in specific cases, common clause in commercial contracts, protecting from potential liability.

Legal & Regulatory

Industrial Property

Property in industrial zone for production and storage activities, includes factories and warehouses, subject to environmental and safety licenses.

Property Types

Influencer Marketing

Contracting with social media influencers to market property to their audience, effective especially for projects targeting youth and families.

Real Estate Marketing

Infrastructure

Basic networks like roads, electricity, water, sewage, quality affecting property value, investment in it raises prices.

Valuation & Investment

Inheritance

Property ownership transfer to heirs after owner's death, per Sharia in Saudi Arabia, requiring heir inventory and registration.

Ownership & Rights

Inheritance Auction

Auction selling property hard to divide among heirs, dividing price per Sharia shares, done under judicial supervision.

Auctions & Sales

Inheritance Share

Each heir's share of property per Sharia, male equal to two females, varying by relationship degree and heirs.

Ownership & Rights

Input VAT

VAT paid on purchases for commercial activities, recoverable or deductible from output VAT.

Tax & Zakat

Interest Rate

Borrowing cost as annual percentage, set by central banks, directly affecting mortgage installments and people's purchasing capacity.

Real Estate Financing

Interim Measure

Temporary court action to protect party's rights during case consideration, like property attachment, preventing actions harmful to rights.

Disputes & Resolution

Interior Design

Designing and decorating interior property space, affecting comfort and aesthetics, good design raises rental and sale value.

Construction & Development

Inventory Management

Tracking furniture and appliances in furnished properties, ensuring intact return, protecting owner rights from damage or loss.

Property Management

Investment Property

Property bought to achieve financial returns not for personal use, through rental or resale, with different tax treatment.

Valuation & Investment

IoT in Real Estate

Internet-connected devices in property like lighting, AC, and security systems, enabling remote control and improving efficiency.

Real Estate Technology

Iqama (Residency)

Residency document for foreign residents in Saudi Arabia, replacing national ID in transactions, required for Ejar contract authentication.

Saudi Regulations

Islamic Financing

Sharia-compliant real estate financing without usurious interest, using formulas like Murabaha and Ijara, common in Saudi Arabia and Gulf.

Real Estate Financing

J

Janitorial Services

Cleaning services for building and common areas, contracts with specialized companies, essential for maintaining property appeal to tenants.

Property Management

Joint Tenancy

Co-ownership with equal shares, upon owner's death, share transfers to remaining owners, common between spouses.

Ownership & Rights

Judgment Execution

Applying court judgment on ground, includes collection or eviction, done through execution court with its broad powers.

Disputes & Resolution

Judicial Committee

Specialized committee in Ejar to quickly adjudicate rental disputes, its rulings binding, issuing decisions within weeks.

Saudi Regulations

Judicial Contract Rescission

Voiding contract by court ruling for material breach, returning parties to pre-contract state, imposing compensation if damages exist.

Disputes & Resolution

Jurisdiction

Court's authority to hear dispute, usually court of property location, specified in contract to avoid jurisdictional disputes.

Legal & Regulatory

L

Land Investment

Buying land to benefit from value appreciation with urban development, long-term investment, requiring patience and illiquidity tolerance.

Valuation & Investment

Land Plot

Land piece with defined boundaries, can be built upon or left vacant, value determined by location, area, and permitted use.

Property Types

Land Survey

Accurately determining land boundaries with specialized equipment, basis of title deeds, determining actual area and resolving boundary disputes.

Ownership & Rights

Land Use

Permitted purpose of land per urban planning, defining if it can be built residentially, commercially, or industrially.

Saudi Regulations

Landlord Obligations

Landlord's legal duties like delivering habitable property, maintaining structural parts, respecting tenant privacy, not breaching contract.

Legal & Regulatory

Late Fee

Penalty imposed on tenant for late rent payment, specified in contract varying by agreement, creating incentive for timely payment.

Financial & Accounting

Late Payment Notice

Official notice sent to tenant when late on rent payment, first step in collection procedures before resorting to legal action.

Financial & Accounting

Lead Generation

Strategies to attract potential customers through digital channels, including ads and SEO, basis of growth.

Real Estate Technology

Leasehold

Ownership limited to long period like 99 years, common in some countries like UAE, uncommon in Saudi Arabia.

Ownership & Rights

Legal Fees

Costs of hiring attorney for representation in disputes, varying by case complexity, may be ordered against losing party.

Disputes & Resolution

Legal Notice

Official notice sent through Notary Public to inform other party of claim or warning, preliminary step before litigation.

Legal & Regulatory

Legal Opinion

Licensed attorney's evaluation of legal matter, used in major transactions to reduce risks, carrying weight in disputes.

Legal & Regulatory

Legal Representation

Hiring licensed attorney to represent party in real estate disputes, optional in Ejar but useful in complex cases.

Legal & Regulatory

Lessee

The party who rents the property from the owner for paid rent, known as the second party, with rights and obligations under rental law.

Contracts & Leasing

Lessor

The party owning the property who leases it for agreed rent, known as the first party in the lease contract with specific rights and obligations.

Contracts & Leasing

Liability

Legal obligation for damages or losses, may be contractual from contract or tortious from negligence, requiring compensation.

Legal & Regulatory

Lien

Right on property to guarantee debt, remains with property until payment, limiting disposition freedom, registered in real estate registry.

Ownership & Rights

Life Estate

Right to use property for beneficiary's life, ending at death with full bare ownership returning to owner, used in inheritance planning.

Ownership & Rights

Liquidity

Ease of converting property to cash at fair price, real estate among less liquid assets compared to stocks and bonds.

Valuation & Investment

Listing Description

Text describing property attractively highlighting features, uses keywords to appear in search, complementing photos role.

Real Estate Marketing

Listing Photos

Professional property photos in ads, most important element in attracting interest, high quality significantly raises viewings.

Real Estate Marketing

Loan Application

Official form submitted by loan applicant to bank, containing personal and financial info, determining borrower's eligibility, requiring attached documents.

Real Estate Financing

Loan Default

Borrower's failure to repay loan installments on time, requiring reminders then legal procedures, may lead to property foreclosure.

Real Estate Financing

Loan Modification

Changing existing loan terms to facilitate repayment, like extending term or reducing installment, occurs during borrower's financial difficulties.

Real Estate Financing

Loan Tenure

Time period for mortgage repayment, ranging from 5 to 30 years, longer reduces monthly installment but raises total cost.

Real Estate Financing

Loan-to-Value (LTV)

Ratio of loan to property value, max 90% for Saudi citizens, higher means greater risk for bank and lower down payment.

Real Estate Financing

Location Analysis

Evaluating property location regarding proximity to services, schools, main roads, location most important factor in real estate value.

Valuation & Investment

Loft

Apartment with high ceiling and open space, usually converted from warehouses, modern style, common in city centers.

Property Types

Logistics Facility

Industrial property for storage and distribution of goods, located near main roads, growing demand with e-commerce growth.

Property Types

Long-Term Rental

Rental for long period usually year or more, most common, lower rent than short-term, providing stability to both parties.

Property Types

Luxury Property

High-end property with high specifications, prime location, and luxurious facilities, limited target segment, high prices and strong returns.

Property Types

M

Maintenance Cost

Expenses for keeping property in good condition, including periodic and preventive repairs, typically 1-2% of property value annually.

Financial & Accounting

Maintenance Request

Notification from tenant to owner or manager about breakdown or issue, recorded in system, handled by priority.

Property Management

Management Agreement

Contract between owner and property manager specifying tasks, authorities, and commission, legal basis of relationship, defining obligations.

Property Management

Management Fee

Percentage property manager receives for services, typically 5-10% of monthly revenues, varying by property type and size.

Property Management

Market Analysis

Studying area's supply, demand, and prices before investing, identifying opportunities and reducing risks, using current data.

Valuation & Investment

Market Saturation

Market reaching state of supply exceeding demand, with prices and rental periods declining, signal for investors to be cautious.

Valuation & Investment

Market Trends

Real estate market trends like price growth, new neighborhoods, consumer preferences, helping identify investment opportunities.

Valuation & Investment

Market Value

Expected price to sell property in open market, determined based on comparisons and supply/demand, differs from book value.

Valuation & Investment

Marketing Budget

Amount allocated for marketing from revenues, typically 5-15% of revenues, distributed across channels based on each effectiveness.

Real Estate Marketing

Marketing ROI

Ratio of profits from marketing campaigns to their costs, marketing spending effectiveness indicator, continuously targeting to raise.

Real Estate Marketing

Master Lease

Comprehensive lease for entire property or multiple units, signed by main tenant who then leases units to subtenants with landlord's permission.

Contracts & Leasing

Mediation

Resolving dispute with help of neutral third party proposing non-binding solutions, faster and cheaper than litigation, optional in Ejar.

Legal & Regulatory

Medical Facility

Property for healthcare activities like clinics, hospitals, and pharmacies, requiring special licenses from Ministry of Health, with different specifications.

Property Types

Milestone

Important station in project indicating phase completion, used to track progress, sometimes linked to contractor payments.

Construction & Development

Ministry of Housing

Saudi government entity responsible for regulating housing and real estate sector, overseeing Ejar, Sakani, and real estate development platforms.

Saudi Regulations

Mixed-Use Property

Property combining residential and commercial, like buildings with ground-floor shops and upper-floor apartments, achieving diverse returns.

Property Types

Model Unit

Fully furnished residential unit displayed for project marketing, helping buyers visualize final product, effective in off-plan sales.

Real Estate Marketing

Modular Construction

Building properties with pre-manufactured units assembled on site, faster and cheaper than traditional, used in rapid housing.

Construction & Development

Monthly Lease

Short-term lease that renews monthly, common in furnished and serviced apartments, offering flexibility at higher rent.

Contracts & Leasing

Monthly Summary

Periodic report for owner summarizing monthly financial performance, including revenues, expenses, arrears, sent automatically.

Financial & Accounting

Mortgage Escrow Account

Account collecting part of installment to pay property costs like insurance and taxes, ensuring payment of obligations on time.

Real Estate Financing

Mortgage Installment

Amount borrower pays monthly to repay mortgage loan, composed of part of principal and part of interest or profit.

Real Estate Financing

Mortgage Insurance

Insurance protecting bank from borrower default, imposed when loan-to-value ratio high, added to monthly installment.

Real Estate Financing

Mortgage Rate

Percentage of interest or profit on mortgage, fundamental factor in total loan cost, affected by interest rate.

Real Estate Financing

Move-In Checklist

Detailed list of property condition at rental start, signed by both parties, protecting from damage disputes at vacancy.

Property Management

Move-Out Checklist

Property condition inspection list at lease end, compared to move-in checklist, basis for deposit refund decision.

Property Management

Murabaha

Islamic financing formula where bank buys property then sells to customer at agreed profit, paid in installments, most famous in real estate financing.

Real Estate Financing

Musharaka

Partnership between bank and customer in property ownership, customer gradually pays bank until full property ownership, Islamic formula.

Required time period to notify the other party of intent to terminate or not renew the contract, typically 60 days before expiry in Saudi Arabia.

Contracts & Leasing

O

Occupancy Rate

Ratio of leased units to total units, positive indicator targeting 95%+, reflecting property management success and appeal.

Property Management

Off-Plan Sale

Selling real estate units before construction completion, regulated by Saudi Wafi program, offering buyer lower price and developer early financing.

Construction & Development

Office Space

Commercial property designated for office and administrative activities, ranging from small to large, prices vary by location.

Property Types

Ombudsman

Neutral mediator investigating complaints and providing recommendations, quickly resolving administrative disputes, complementing real estate judiciary role.

Disputes & Resolution

Online Auction

Auction conducted entirely online, expanded in Saudi Arabia with tech development, allowing participation from anywhere.

Auctions & Sales

Online Listing

Publishing property on electronic platforms like Haraj, Aqar, and Bayut, most important channel for reaching tenants, requiring good photos and accurate descriptions.

Property Management

Open House

Showing property for inspection at set time for visitors without appointments, gathering interested parties together, common in luxury property marketing.

Real Estate Marketing

Operating Expenses

Daily property operation costs like maintenance, utilities, management, and insurance, deducted from revenue to calculate net income.

Financial & Accounting

Opportunity Cost

What real estate investment misses from other opportunities, must be compared with alternative investment returns for sound decision.

Valuation & Investment

Output VAT

VAT collected from customers on sales, paid to tax authorities, with input VAT deducted from it.

Tax & Zakat

Overdue Payment

Rent installment not paid by due date, requiring reminder procedures then legal action if continued, potentially incurring penalties.

Financial & Accounting

Owner Statement

Periodic report showing owner the details of income, expenses, and arrears for properties, with amount due after commissions.

Financial & Accounting

Ownership Transfer

Transferring property ownership from one person to another by sale, gift, or inheritance, registered at Notary, requiring fees and procedures.

Ownership & Rights

P

Paperless Office

Office relying on digital documents instead of paper, saving costs and facilitating access, general trend in real estate sector.

Real Estate Technology

Parking Space

Designated space for car parking, may be separately sold or rented, real estate with independent market in major cities.

Property Types

Payment Method

Approved method for rent payment: bank transfer, cash, check, or card, specified in contract with electronic transfer preferred for documentation.

Financial & Accounting

Payment Plan

Agreement between landlord and tenant to schedule arrears payment in installments, avoiding legal procedures, documented in writing.

Disputes & Resolution

Payment Schedule

Organized plan for rent installments specifying amount and due date for each, helping track payments and arrears.

Financial & Accounting

Penthouse

Luxury apartment on top floor of building, usually with large terrace and distinguished view, highest priced apartments in building.

Property Types

Permit Fees

Costs of obtaining construction permits from municipality, varying by project type and area, included in total project costs.

Construction & Development

Petty Cash

Small cash amount kept by office for daily small expenses, replenished periodically, expenditure must be documented.

Financial & Accounting

Plumbing

Water and drainage piping system in property, needing good design and regular maintenance, malfunctions among most common property issues.

Construction & Development

Portfolio Management

Managing real estate portfolio to maximize returns and minimize risks, including investment diversification and optimal management of each property.

Property Management

Post-Construction

Phase after construction completion including handover, maintenance, and defects warranty, basis of project sustainability and owner satisfaction.

Construction & Development

Power of Attorney

Official authorization empowering one person to act on behalf of another, used in property management, sales, and rentals, authenticated by Notary.

Legal & Regulatory

PPC Advertising

Paid ads on Google and social media platforms appearing to target audience, paying per click, providing fast visits but costly.

Real Estate Marketing

Pre-Approval

Bank's evaluation of borrower's loan eligibility before property selection, determining loan ceiling, facilitating negotiations with seller.

Real Estate Financing

Predictive Analytics

Using data and statistics to predict real estate market trends, helping investors and developers in more accurate decisions.

Real Estate Technology

Prefabricated Construction

Manufacturing building parts in factory then installing on site, reducing time and cost, common in warehouses and factories.

Construction & Development

Premium Property

Above-average property with good specifications and location, targeting upper-middle class, combining quality and reasonable price.

Property Types

Prepayment Penalty

Fees imposed on borrower if loan repaid before due date, compensating bank for lost interest, lower in Islamic loans.

Real Estate Financing

Preventive Maintenance

Periodic planned maintenance before breakdowns, extending property life and reducing emergency costs, basis of good management.

Property Management

Price Per Square Meter

Average property price per square meter, measure for comparing properties and areas, varying by location, type, and build quality.

Valuation & Investment

Private Auction

Auction limited to invited bidders only, common in luxury properties, preserving sellers' and buyers' privacy.

Auctions & Sales

Project Brochure

Booklet presenting real estate project details with photos, specifications, and prices, distributed in exhibitions and viewings, traditional marketing tool.

Real Estate Marketing

Project Management

Planning, executing, and monitoring construction projects to ensure completion within set time and budget, requiring organizational and technical skills.

Construction & Development

Property Inspection

Examining property in presence of both parties at start and end of contract to document its condition, protecting both from damage disputes later.

Contracts & Leasing

Property Management

Comprehensive service for managing property on behalf of owner, including rental, maintenance, collection, and tenant relations for monthly commission.

Property Management

Property Management Service

Professional service managing properties on behalf of owner, including maintenance, collection, and tenant relations, for commission.

Saudi Regulations

Property Manager

Person managing property or portfolio on owner's behalf, dealing with tenants, maintenance, finances, with contract-defined authorities.

Property Management

Property Ownership

Full right to dispose of property proven by title deed, allowing sale, rental, endowment, and waiver, highest type of real rights.

Ownership & Rights

Property Photography

Professional photography of property highlighting features, effective marketing tool, good photos increase engagement by 70% on platforms.

Property Management

Property Sale

Transferring ownership for price, requiring authenticated sale contract and 5% real estate transaction tax, demanding specific legal procedures.

Ownership & Rights

Property Showings

Visits by potential tenants to property before rental decision, usually by scheduled appointments, requiring good property preparation.

Property Management

Property Valuation

Determining market value of property using specific criteria, performed by certified appraiser, basis of buy/sell and financing decisions.

Valuation & Investment

PropTech

Applying modern technologies in real estate sector, includes online platforms, AI, and blockchain, rapid evolution.

Real Estate Technology

Provisional Balance

Temporary accounting balance before final settlement, used for review and changes with updates, settled at account closing.

Financial & Accounting

Public Auction

Auction open to all interested, transparent and public, ensuring fair price and equal opportunity, most common in real estate auctions.

Auctions & Sales

Public Order

Legal principle making certain matters non-derogable, contract clauses violating public order are nullified.

Legal & Regulatory

R

Real Estate App

Mobile app for real estate services like property search or rental management, facilitating access to real estate market.

Real Estate Technology

Real Estate Auction

Public sale of property to highest bidder, used for foreclosed or inherited properties, transparent and ensuring fair price.

Auctions & Sales

Real Estate Automation

Automating tasks like sending notifications, collecting rent, and renewing contracts, saving time and reducing human errors.

Real Estate Technology

Real Estate Broker

Licensed person or office mediating between sellers/buyers or landlords/tenants, receiving commission for services.

Saudi Regulations

Real Estate Brokers Association

Professional body regulating real estate brokers in Saudi Arabia, setting standards, organizing training courses, protecting member rights.

Saudi Regulations

Real Estate Bubble

Abnormal price increases exceeding economic reality, followed by collapses, warned by analysts during severe speculation.

Valuation & Investment

Real Estate CRM

Customer relationship management system for real estate offices, tracking potential customers and transactions, increasing sales and improving service.

Real Estate Technology

Real Estate Cycle

Real estate market fluctuations between boom and recession over time periods, understanding helps timing buy/sell decisions.

Valuation & Investment

Real Estate Developer

Company or person undertaking real estate project development from start to finish, investing capital and bearing risks for profits.

Construction & Development

Real Estate Development

Comprehensive process of converting land to integrated real estate project, including planning, licensing, construction, and marketing, long-term investment.

Construction & Development

Real Estate Development Fund

Saudi fund providing subsidized real estate loans to citizens, helping homeownership, established 1974 within housing plan.

Saudi Regulations

Real Estate Disposal Tax

5% tax on real estate sales in Saudi Arabia, replacing VAT on real estate sale, paid by seller.

Tax & Zakat

Real Estate Due Diligence

Comprehensive legal and financial property examination before purchase or rental, revealing potential risks and issues, protecting investor.

Legal & Regulatory

Real Estate Endowment

Converting property to endowment by official decree, benefiting specified beneficiaries or charitable work, managed by cautious investment.

Ownership & Rights

Real Estate Events

Real estate exhibitions and conferences to attract investors and buyers, common in Saudi Arabia like Cityscape Riyadh, opportunity to showcase projects.

Real Estate Marketing

Real Estate Fair

Exhibition where real estate companies participate to showcase projects, good opportunity to meet investors, common in Saudi Arabia and Gulf.

Real Estate Marketing

Real Estate Finance

Banking activity to finance buying or building real estate, greatly grew in Saudi Arabia with Vision 2030 and ownership support policies.

Real Estate Financing

Real Estate Finance Law

Saudi law regulating real estate financing operations, defining rights and duties of financiers and borrowers, protecting market and enhancing stability.

Saudi Regulations

Real Estate General Authority (REGA)

Saudi authority regulating real estate sector and licensing brokers and developers, established 2017 to develop and monitor real estate market.

Saudi Regulations

Real Estate Insurance

Comprehensive insurance against risks affecting property like fires and theft, mandatory for financed properties, protecting asset value.

Real Estate Financing

Real Estate Investment

Buying property aiming to achieve profits from rental or value appreciation, one of most important investment types, with relative stability.

Valuation & Investment

Real Estate KPIs

Metrics measuring property management performance, including occupancy, returns, and arrears, used by owner to evaluate performance.

Property Management

Real Estate Leverage

Using financing to buy property larger than self-budget, amplifying profits and losses, common in real estate investment.

Valuation & Investment

Real Estate Marketing

Integrated activity to attract customers to properties, includes advertising, promotion, and public relations, constantly evolving with media development.

Real Estate Marketing

Real Estate Mortgage

Long-term loan to buy property guaranteed by property itself, paid in monthly installments, most common in housing finance.

Real Estate Financing

Real Estate Platforms

Websites and apps to display properties for sale and rent, most famous in Saudi Arabia: Haraj, Aqar, Bayut, adopted by most offices for wider reach.

Property Management

Real Estate Pledge

Giving property as loan guarantee, pledger retains ownership but pledgee has right to execute upon non-payment, officially registered.

Ownership & Rights

Real Estate Portfolio

Group of properties owned by investor, diversifying portfolio across property types reduces risk and improves returns.

Valuation & Investment

Real Estate Registry

Official system for registering property ownership and rights, ensuring transparency and rights protection, managed by Real Estate Security Authority in Saudi Arabia.

Ownership & Rights

Real Estate SaaS

Cloud property management software used by subscription, providing comprehensive management from rental, maintenance, and accounting, replacing local systems.

Real Estate Technology

Real Estate SEO

Optimizing office website to appear in search results when searching for properties, bringing free customers, long-term strategy.

Real Estate Technology

Real Estate Succession

Procedures for transferring property ownership to heirs, including heir inventory and division, done in Sharia courts and Notaries.

Ownership & Rights

Real Estate Tax

Taxes on property ownership or transfer, in Saudi Arabia includes 5% real estate transaction tax on sales, exempt for residential rentals.

Financial & Accounting

Real Estate Transaction Tax

5% tax on real estate sale transactions in Saudi Arabia, replacing VAT on real estate, paid by seller.

Saudi Regulations

Real Estate Website

Office website displaying properties and enabling contact, digital face of office, basis of electronic marketing strategy.

Real Estate Technology

Recovery Fund

Financial reserve allocated to cover potential losses from arrears or bad debts, contributing to cash flow stability.

Financial & Accounting

Referral Program

System rewarding customers who bring new customers, effective way to attract trusted customers, lower cost than ads.

Real Estate Marketing

Refinancing

Replacing current loan with new one with better terms like lower interest rate, improving cash flow and saving money for borrower.

Real Estate Financing

REIT

Specialized real estate investment funds, offering shares to public, allowing investor to benefit from real estate without direct purchase.

Valuation & Investment

Remodeling

Radical change in property design like demolishing walls or adding rooms, deeper than renovation, transforming property to new style.

Construction & Development

Renewal Notice

Official notice sent by either party before contract expiry to confirm desire for renewal or change, typically sent 60 days before.

Contracts & Leasing

Renovation

Rehabilitating existing property to improve or update, lower cost than new construction, raising property value and rental returns.

Construction & Development

Rent Comparables

Rental prices of similar properties in same area, used for pricing rent, ensuring competitive price attracting tenants.

Property Management

Rent Deferral

Agreement between landlord and tenant to postpone rent payment for set period, occurs in exceptional circumstances, must be documented in writing.

Financial & Accounting

Rent Discount

Reducing part of rent by landlord, may be reward for early payment, incentive for renewal, or compensation for property issues.

Financial & Accounting

Rent Increase

Raising rent value by the landlord, typically done at contract renewal, subject to legal restrictions preventing excessive increases and protecting tenants.

Contracts & Leasing

Rent Payment

Agreed amount tenant pays for property use, monthly or quarterly or annually, documented electronically through Ejar.

Financial & Accounting

Rent-to-Own

System combining lease and purchase; tenant pays rent for set period then becomes property owner, common in Islamic real estate financing.

Contracts & Leasing

Rental Application

Form submitted by potential tenant with personal and financial info, basis of tenant screening before contract signing.

Property Management

Rental Arrears

Unpaid rent amounts past their agreed-upon due dates, accumulating over time and giving landlord right to legal claim.

Contracts & Leasing

Rental Claim

Lawsuit between landlord and tenant, filed in Ejar, includes arrears, eviction, and damages, characterized by speed in adjudication.

Disputes & Resolution

Rental Collection

Process of collecting rent payments from tenants regularly, including reminders and follow-up, done electronically through modern systems.

Financial & Accounting

Rental Contract

A written agreement between landlord and tenant specifying rental terms for a property over a defined period for rent, registered in Ejar in Saudi Arabia.

Contracts & Leasing

Rental Disputes

Disputes between landlord and tenant resolved through specialized judicial committee in Ejar, providing fast solutions without resorting to general courts.

Contracts & Leasing

Rental Listing

Rental ad containing property details, photos, and price, published on real estate platforms, primary tool for attracting tenants.

Property Management

Rental Market Index

Periodic index showing average rental prices in Saudi cities, used to evaluate prices and investment in each region.

Saudi Regulations

Rental Period

The agreed-upon time period for renting property, typically one year renewable, with longer durations possible for commercial contracts.

Contracts & Leasing

Rental Receipt

Official document proving tenant's rent payment, including amount, date, and coverage period, must be kept for future reference.

Contracts & Leasing

Rental Yield

Ratio of annual rental income to property value, important indicator for evaluating real estate investment viability, calculated as percentage.

Contracts & Leasing

Reserve Price

Lowest price seller accepts to sell, auction cancelled if not reached, protecting seller from low-price sale.

Auctions & Sales

Residential Compound

Group of villas or houses in single location with shared facilities, providing security and privacy, common in Riyadh and Jeddah.

Property Types

Residential Lease

Lease for residential properties like apartments and villas, mandatory to document in Ejar since 2018 at 125 SAR annually.

Contracts & Leasing

Residential Property

Property designated for human habitation, includes apartments, villas, and houses, subject to different regulations than commercial properties.

Property Types

Residential Property Zakat

Properties for personal residence exempt from zakat, zakat imposed only on properties intended for trade or sale.

Tax & Zakat

Residential VAT Exemption

Residential rental exempt from VAT in Saudi Arabia, reducing housing cost for citizens and residents.

Tax & Zakat

Retail Space

Property in commercial location for selling goods to consumers, location and accessibility matter, rent prices higher than offices.

Property Types

Retargeting

Ads appearing to those who previously visited site, reminding of property and motivating return, effective in increasing conversions.

Real Estate Marketing

Return on Investment (ROI)

Ratio of profits achieved from real estate investment to total cost, key indicator for investment success, calculated annually.

Financial & Accounting

Revenue Recognition

Accounting principle determining when revenue is recorded in books, usually when rent is earned not received, per accounting standards.

Financial & Accounting

Right of Way

Right to pass through another property to reach own, form of easement, registered in property deed, ensuring access to surrounded properties.

Ownership & Rights

Risk Management

Identifying and reducing risks associated with real estate investment, includes insurance, diversification, due diligence, protecting from losses.

Valuation & Investment

Rooftop

Top part of building, used for shared facilities, restaurants, or gardens, may be separately rented for entertainment commercial activities.

Property Types

Rules and Regulations

Building or compound rules tenants must follow, including noise, parking, and shared facilities, attached to contract.

Property Management

S

Safety Standards

Construction safety requirements like fire systems and emergency exits, mandatory per Saudi Building Code, protecting lives.

Construction & Development

Sakani Program

Saudi housing program aiming to raise citizen homeownership to 70% by 2030, offering housing units and subsidized loans.

Saudi Regulations

Schedule

Plan specifying project phases and duration of each, essential follow-up tool, any delay affects subsequent phases and cost.

Construction & Development

Security Deposit

Amount tenant pays landlord at signing as security for property condition, refunded after deducting damages, typically equal to one month's rent.

Financial & Accounting

Security Services

Property security and guarding services including guards and surveillance cameras, increasing property appeal, common in compounds and offices.

Property Management

Security Systems

Electronic systems to protect property like cameras, alarms, and access control, evolving with smart tech for increased effectiveness.

Property Management

Service Level Agreement (SLA)

Specific agreement on service quality and speed standards between property manager and tenant, ensuring fast response to maintenance requests.

Property Management

Serviced Apartment

Fully furnished apartment offering hotel services, rented daily or monthly, common for tourists and business travelers.

Property Types

Settlement

Amicable agreement between parties to end dispute with mutual concessions, documented in writing, having force of judicial ruling after authentication.

Legal & Regulatory

Settlement Conference

Meeting before official sessions attempting settlement, mandatory in Ejar, aiming to reduce court cases.

Disputes & Resolution

Severability Clause

Clause ensuring that nullifying part of contract doesn't affect remaining clauses, preserving full contract validity when one term invalid.

Legal & Regulatory

Shopping Mall

Large commercial complex with multiple shops and entertainment facilities, major developers invest in, shop rentals among highest.

Property Types

Short-Term Rental

Rental for short period from days to months, applied to furnished and serviced apartments, higher rent than long-term.

Property Types

Smart Home

Property equipped with smart systems controllable remotely, including lighting, AC, and security, raising property value and appeal.

Property Management

Social Media

Twitter, Instagram, Snapchat, and TikTok, effective marketing channels for real estate in Saudi Arabia, allowing wide audience reach.

Real Estate Technology

Soil Test

Testing soil properties before construction to determine suitable foundation type, mandatory for large projects, prevents future issues.

Construction & Development

Specialized Property

Property for specific use like gas stations, mosques, and stadiums, subject to special licenses, with limited but high-priced markets.

Property Types

Specific Performance

Ruling obligating breaching party to perform obligations as stated in contract, alternative to monetary compensation, common in real estate sale contracts.

Disputes & Resolution

Speculation

Buying property aiming to profit from short-term price increases without using it, increases market volatility and contributes to bubbles.

Valuation & Investment

Starting Bid

Lowest price auction starts from, determined based on property valuation, may be lower than actual price to attract bidders.

Auctions & Sales

Statement of Claim

Official document containing claim details, demands, and evidence, basis of starting procedures, must be accurate and comprehensive.

Disputes & Resolution

Statute of Limitations

Legal period during which rights can be claimed, varying by type, typically 5 years for rental claims.

Legal & Regulatory

Storage Unit

Small storage unit rented to individuals or small companies, growing popularity with increased need for additional storage spaces.

Property Types

Strata Title

Apartment ownership in building with share in common areas, common system in apartments, with special deeds and regulations.

Ownership & Rights

Structural Design

Designing load-bearing elements in building like columns and foundations, ensuring building safety and load capacity.

Construction & Development

Studio

Small apartment with single room combining living and sleeping, with kitchenette and bathroom, suitable for singles, lower cost than regular apartments.

Property Types

Subcontractor

Specialist assigned by main contractor for part of work like electrical, plumbing, or painting, expert in specific field.

Construction & Development

Subletting

When tenant rents the leased property to third party, requiring landlord's written consent, prohibited under Saudi law without permission.

Contracts & Leasing

Subpoena

Court order summoning person for testimony or document presentation, compliance mandatory, non-compliance leads to legal penalties.

Disputes & Resolution

Supply and Demand

Two fundamental factors in determining real estate prices, increased demand raises prices, increased supply lowers them, balance occurs naturally.

Valuation & Investment

Sustainability

Building eco-friendly properties using materials and techniques reducing carbon footprint, global trend supporting Saudi Vision 2030.

Unfurnished Property

Property without furniture or appliances, lower rent, preferred by long-term tenants, requiring own furnishing expense.

Property Types

Usufruct

Right to use and benefit from property without ownership, limited by duration, common in endowments and special agreements, real right.

Ownership & Rights

Utilities

Electricity, water, sewage, and internet services, essential to property, costs varying by usage and area.

Property Management

Utility Management

Managing electricity, water, internet in property, includes meter readings and bills, may be owner's or tenant's responsibility.

Property Management

V

Vacancy Rate

Ratio of vacant units to total units, negative indicator to reduce, lowers revenues and raises costs, target below 5%.

Property Management

Vacant Land

Unbuilt land plot, may be investment, residential, or commercial, value rises with surrounding urban development.

Property Types

Vacant Possession

Delivering property to tenant free from any legal or factual encumbrances, fundamental condition in most lease contracts.

Contracts & Leasing

Vacation Rental

Short-term rental of tourist properties like resthouses and chalets, serving domestic tourism, common through platforms like Airbnb.

Property Types

Variable Rate

Interest rate changing with reference interest rate change, lower than fixed initially but more risky long-term.

Real Estate Financing

VAT on Rental

15% tax imposed on commercial rentals in Saudi Arabia, residential rentals exempt, paid by tenant to VAT-registered landlord.

Financial & Accounting

VAT on Services

15% tax on brokerage and real estate management services, paid by client to registered office, deducted from commission.

Tax & Zakat

VAT Registration

Entity registration for VAT when annual revenues exceed 375,000 SAR, mandatory for large real estate offices.

Tax & Zakat

Verdict

Final decision issued by judicial committee after studying evidence, binding for execution, may be appealed within legally specified period.

Disputes & Resolution

Video Marketing

Using videos to market properties, more attractive than photos, showcasing spaces and views, common on social media.

Real Estate Marketing

Villa

Detached house of one or more floors, usually with garden, higher value than apartments, common in upscale Saudi neighborhoods.

Property Types

Virtual Tour

3D online tour of property, enabling tenant to inspect from distance, saving time and increasing viewings.

Property Management

Vision 2030

Comprehensive Saudi development plan targeting economic diversification, including important real estate goals like raising homeownership to 70%.

Saudi Regulations

Void Contract

Contract producing no legal effect due to violating law or public order, considered as if it never existed, impossible to correct.

Legal & Regulatory

Voidable Contract

Originally valid contract that can be invalidated upon request by one party for some defect, like incapacity, duress, or fraud.

Legal & Regulatory

Voluntary Vacancy

Tenant leaving the property by full free will at contract end or by agreement with landlord on early termination.

Contracts & Leasing

VR Real Estate

Immersive virtual tour technology for properties, allowing buyers to experience property remotely, rapid evolution in Saudi Arabia.

Real Estate Technology

W

Wafi Program

Saudi off-plan sales program, requiring developers to meet strict standards protecting buyers, ensuring quality of real estate projects.

Saudi Regulations

Waiver

One party giving up right in contract, must be explicit and clear, may be for compensation or without, documented in writing.

Legal & Regulatory

Waqf (Endowment)

Endowing property forever for charitable works, not sold or inherited, managed by Awqaf Authority, common in Saudi Arabia for mosques and schools.

Ownership & Rights

Warehouse

Industrial property for goods storage, usually in industrial zones, large spaces with high ceilings and wide doors for trucks.

Property Types

Warranty

Developer's commitment to fix any defects appearing in property within specified period after handover, mandatory in Wafi program.

Construction & Development

Withholding Tax

Tax deducted from payments to non-Saudi residents, includes real estate investment returns for foreigners, varying rates.

Tax & Zakat

Witness

Person who witnessed the disputed event and provides testimony before judicial body, testimony considered legally valid evidence.

Legal & Regulatory

Z

Zakat

Islamic obligation imposed on wealth at 2.5% annually, includes properties for trade and sale but excludes those for residence or long-term investment.

Financial & Accounting

Zakat Base

Total funds subject to zakat after deducting obligations, includes commercial real estate and properties for sale, excludes fixed assets.

Tax & Zakat

Zakat Rate

Imposed zakat percentage, 2.5% for individuals, varies for entities by fiscal period, paid annually.

Tax & Zakat

ZATCA

Saudi government entity responsible for collecting zakat, taxes, and customs, overseeing VAT and e-invoicing compliance.

Saudi Regulations

Zoning

Regulating land uses in Saudi cities, defining residential, commercial, and industrial zones, basis for real estate investment decisions.

Saudi Regulations